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This chapter examines trends in Medicare spending from 1992 to 2006 across all hospital referral regions (HRRs) in the United States. The cost growth has been segregated into changes in the distribution of the population among high- and low-spending HRRs, spending per enrollee, number, or medical encounters, and spending per encounter. This chapter also looks at the differences between types of spending growth, and between different service categories within Part A and Part B. The study looks first at aggregate trends in Medicare spending and enrollment. Overall per capita Medicare...

This chapter examines trends in Medicare spending from 1992 to 2006 across all hospital referral regions (HRRs) in the United States. The cost growth has been segregated into changes in the distribution of the population among high- and low-spending HRRs, spending per enrollee, number, or medical encounters, and spending per encounter. This chapter also looks at the differences between types of spending growth, and between different service categories within Part A and Part B. The study looks first at aggregate trends in Medicare spending and enrollment. Overall per capita Medicare fee-for-service spending grew at a real rate of 3.8 percent per year between 1992 and 1999, and at a rate of 2.7 percent per year from 1999 to 2006. Throughout both of these periods growth in Part B spending was higher than growth in Part A spending.